Preheat your oven to 350°F (175°C) and line a standard muffin tin with cupcake liners.

In a large mixing bowl, whisk together the all-purpose flour, baking powder, and salt.

In a separate bowl, cream together softened butter and granulated sugar with an electric mixer on medium speed for about 3-4 minutes.

Add the eggs one at a time to the butter-sugar mixture, mixing well after each addition.

Gently mix in the milk and diced peaches until just combined.

Gradually add the dry ingredient mixture to the wet ingredients, mixing on low speed until smooth.

Spoon the batter into prepared cupcake liners, about two-thirds full, and bake for 18-20 minutes.

Let the cupcakes cool in the tin for about 5 minutes, then transfer them to a wire rack to cool completely.

In a mixing bowl, beat together cream cheese, softened butter, and honey until smooth.

Once the cupcakes are completely cooled, frost the tops generously with the cream cheese mixture.

Optionally, drizzle honey glaze over the frosted cupcakes and garnish with additional peach slices.